Ayala Land Inc. said the board of its listed real estate investment trust, AREIT Inc., has approved the issuance of 441.1 million common shares as payment for two commercial buildings in Cebu and Pasig City owned by Summerhill Commercial Ventures Corp., a wholly owned Ayala Land subsidiary.
The two properties were valued at P19.48 billion based on a third-party fairness opinion from FTI Consulting Philippines Inc. The transaction values the new AREIT shares at P44.15 each—slightly above the 30-day volume-weighted average price of P43.93—and will be executed as a tax-free asset exchange.
The move marks another step in Ayala Land’s strategy to grow AREIT’s asset base with prime commercial properties while recycling capital to fund new developments. AREIT said the infusion supports its goal of building a diversified portfolio of high-quality, income-generating assets to maximize long-term shareholder returns.
The deal remains subject to the approval of AREIT stockholders at the company’s annual meeting on December 11.
Since its 2020 listing, AREIT has been one of the country’s top-performing real estate investment trusts, delivering a total shareholder return of 99 percent from dividend yields and price appreciation as of October 27, when its shares closed at P43.10.
AREIT began with P30 billion in assets under management (AUM), equivalent to 153,000 square meters of leasable space. Today, its portfolio includes 1.43 million square meters of building gross leasable area and 286 hectares of industrial land, with an AUM of P138 billion.
Following the latest infusion, AREIT’s portfolio will expand to more than 1.81 million square meters and a total AUM of P158 billion—further cementing its position as the country’s leading office and commercial REIT.
